will it be worth partipating , page-17

Even though its unofficial, it is obvious that the rights issue will be roughly 3:1

Market cap currently $60mil. They want to raise $200mil. 200/60= 3.333 The ratio could be a bit either side depending on issue price of roughly 6.7c

Its possible the rights issue will be slighly discounted. But it wont be more than 6.7c thats for sure, and the rights will certainly be non-renounceable. Why would they underwrite the issue if the rights were tradeable?

There must be some value in the restructure. EPN are committing $9.5mil initially, plus taking up the rights for another $30mil odd. So they are showing $40mil worth of faith in MDT with a current market cap of $60mil.

If Orbis fully committed they would cough up about $30mil additional, if they can manage that much. So without other majors and everyday holders $70mil out of $209.5mil is accounted for.

If the rest of the holders on average can match their current investment 1:1 then that raises another $50mil(minus Orbis $10mil). Suddenly they have $120mil out of the $209.5mil

Thats enough that they can cover unsecured debt and derivatives. So even if not fully underwritten, EPN could chip in as little or as much additional funds as they desire.

I think its a realistic minimum. Some wont participate, some will fully and others partially. Alot may depend if the record date has passed or will they allow interested investor to buy in now and still get the rights.

It seems over the line for me, with or without our support.

Whether to sell, buy more, participate or not, will in the end come down to availability of funds, portfolio balance and investment timeframes.

One things for sure alot of NAV has been eroded and their will be 4bil odd shares on issue post recap. So even a $100mil write up in property valuations only adds 2.5c per trust.

But also the trust has been de-risked. Just depends on timeframe.